Pending Home Sales Decline
Wow, tough news coming out today. Pending home sales were way down in May, according to the National Association of Realtors. It’s basically attributed to the expiration of the homebuyer tax credit.
Their measure of pending home sales dropped 30%. This is after 3 months of solid gains, meaning people had been rushing to close a deal by the deadline. So don’t expect any pickups in the coming months.
But one point of stability was the level of home prices. Apparently, negotiations were a little cooler than they have been because people knew they could count on the tax credit.
And of course employment is a big factor, so if more jobs are created, we should see more activity in the market.
Most of the declines nationally occurred in the South. Maybe people just don’t like the heat, but I can’t imagine flocks of people heading north after the winter we had. Hmmm, maybe it’s the oil…
Anyway, here’s what you need to take away from today’s news. Lots of properties are going to stay on the market while those up for grabs will see lots of negotiation. So keep your eyes open and be ready to make your move when you can.
I’ll be here if you need me.
-
http://www.shortsalefundamentals.com Cory Boatright
